Foster's has restated its net profit as it adopts the Australian equivalents to International Financial Reporting Standards (AIFRS) commencing 1 July 2005.

Restated net profit under AIFRS for the half year ended 31 December 2004 is A$26m higher than the A$757m the group previously reported under Australian GAAP (AGAAP). This increase is due mainly to the elimination of goodwill amortisation under AIFRS;

Foster's also estimated a A$1.2 billion reduction to net assets on transition to AIFRS at 1 July 2004. This reduction is due mainly to de-recognition of internally generated intangible assets (brand names and mailing lists) and deferred tax adjustments.

Foster's added that having its recently acquired Southcorp business had previously identified three key areas of AIFRS impact (tax, share-based payments and financial instruments) but these will not impact Foster's 1 July 2004 transitional adjustments or F05 half year AIFRS results.